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Quidik Corporation sold a machine for $80,000 that it had acquired three years ago for $68,000. If its adjusted basis when sold was $50,000, what
Quidik Corporation sold a machine for $80,000 that it had acquired three years ago for $68,000. If its adjusted basis when sold was $50,000, what should Quidik report on its tax return as a result of this sale? a. Section 1245 recapture of $18,000; Section 1231 gain of $30,000; b. Ordinary income = $12,000 and Section 1231 gain = $18,000 c. Section 1245 recapture = $18,000 and Section 1231 = $12,000; d. Section 1231 gain = $38,000 e. None of the above
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